The government helped negotiate its sale to J.P. Morgan chase for the bargain basement price of $2 a share.

"It's the job of regulators to come together in times of financial stress and to take action that protects our capital markets," Secretary of the Treasury Henry Paulson said.

The Fed and other economic policy advisors have been working in overdrive to keep the troubled mortgage market that triggered multi-billion dollar losses from threatening the financial system.

"The Fed realized how connected Bears Stearns is throughout the rest of the market. And so if there's a freeze on assets we would have a really serious depletion of liquidity in the markets," said Susan Phillips of the George Washington University School of Business.

And that has some market watchers wondering which banks, like Bear Stearns, may be next.

"It's a very tragic occurrence but I think it's just the beginning," Bear Stearns employee Stephen Raphael

Not only has people on Wall Street concerned, but those on Main Street too.

Investment advisor Jesse Brown said, "The biggest mistake people make is operating out of fear as opposed to thoughtful investment process."

Even though the Fed has worked aggressively to ease those concerns from spreading, it's still unclear just how much the Fed's actions will help to keep the U.S. economy and the global financial system in check.